that 1. the magnitude of a typical down payment + closing costs gets underestimated, and 2. the amount of true, net cash flow in the first few years of ownership gets overestimated (as it's typically zero, or negative.)Does that help?

There aren't many multifamily properties in my area (24 at this moment) without paying way out of my range.Saying all that, I'm still new to "running numbers" but my lender has been a great help in showing me things like: my property tax when I'm not living in there, taking a __% seller credit to reduce interest for better monthly payments, or different loan options compared to others.

In this Spreadsheet I am comparing: OPTION: 1 Conventional Financing for "Buy & Hold" for a Rental vsOPTION: 2 using "Subject To" and Reselling to a Tenant Buyer OPTION: 1 As a Rental, the Kitchen and Bathrooms needed updating requiring about $5,000 of work in order to be ready to be a Rental.

Because I have kids, having roommates in my own unit isn’t an option, so I’m planning to live in one unit and rent out the others (or possibly buy out-of-state if that ends up being the better route). 

It has been running as a short term rental and is under water and I can not afford to hold it.Anyone willing to help me figure out options to sell or give up this property so I can start rebuilding my finances?

I am all for helping out a new Investor, but what you're sharing is concerning.

You also give up the option of selling with the owner occupied tax exempt if they are rentals before they are your primary home.

Any help or advice would be appreciated I don't expect this place to last the week in my market.I had planned to buy it to rent out the house almost immediately.

(Heaven help you if it's a jury trial), you are the big bad investor that took advantage of the seller using superior knowledge. 

Quote from @Vespa Trixie: I dont know if this will help but, I have contacted my tax guy.